SBV to hold gold auction this morning

Tuesday, May 14, 2024 11:11

The central bank will continue to conduct gold bullion auction sessions to increase supply to the market. — VNA/VNS Photo

The (SBV) announced that it will organise the auction of SJC-brand gold bars this morning. The session will introduce changes to the bidding conditions compared to the previous auction.

The anticipated total volume of gold bullions for the upcoming auction is 16,800 taels.

A 10-per-cent deposit rate will be required, with a reference price of VNĐ88 million per tael (US$3,457 per tael) used to calculate the deposit value.

Each bid lot will consist of 100 taels.

This time, the central bank said that the minimum bidding volume for this session will be five lots, equivalent to 500 taels. The amount declines by 200 taels from the most recent auction held on May 8.

Experts said that reducing the minimum bidding volume per participant aims to alleviate the capital requirement and attract more businesses to participate in the bidding process.

There is also a significant increase in the maximum bidding volume per participant, allowing bids for up to 40 lots (4,000 taels), doubling the previous limit of 20 lots (2,000 taels).

The bidding increment for the auction is set at VNĐ10,000 per tael, with each bidding unit consisting of one lot (100 taels).

Participants are allowed to register a minimum price that is equal to or higher than the floor price announced by the SBV.

In the previous auction held earlier this month, the central bank successfully auctioned 34 lots, equivalent to 3,400 taels of gold, with a total of three winning bidders.

On the domestic market, SJC gold prices are quoted at VNĐ86 million per tael for sellers and VNĐ89 million per tael for buyers at 9:00am.

In the past few days, SJC gold prices have experienced substantial volatility, reaching a peak of VNĐ92.5 million per tael on May 10.

The SBV has announced that it will continue to conduct gold bullion auction sessions to increase the supply to the market, ensuring a suitable volume and frequency in response to market demand.

Additionally, it emphasises the importance for individuals being more cautious when engaging in gold transactions to mitigate risks amid the fluctuating international gold market and upcoming regulations and market controls in the gold sector. — VNS

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